10 January, 2020
A few decades ago, getting a job was one of the biggest successes of man’s life. It was a time when one could barely make a decent living as the world wasn’t a global village. Today, all barriers of time and distance have been torn down and we are exposed to unlimited opportunities. Now we not only think about getting a job, but we also ensure that we love it and we can expect a great future in it. In addition to the present, we also plan for our future endeavors. However, many people have realized that jobs have only a limited amount of growth to offer. After that, you can settle for what you have or start a business of your own.
Most professionals now start their own company after working a few years in the market. You can’t get rich or live a free life with a job. A businessman might not earn a single penny an entire year and then make enough for a decade in one month. They are free to do what they want with their business, take days off on their will, and travel the world while running their business. Most startups are service providers. They provide one service that they have mastered in their years of job. They develop strong technical skills, but they don’t learn how to start a business in a job. Here I’ve shared everything you should know and do when starting a service business.
Come Up with a USP
There is competition in every field and industry. You can pick even the most unique service to offer, you will find a strong competitor already running a successful business in it. It doesn’t mean you should just give up. There will always be difficulties; you just need to know how to cope with them. Now, if you are a new business and you have to make your place in the market, then you must come up with a Unique Selling Proposition. What is it that differentiates you from the rest?
You may have to do some digging to find a market gap. If you find a gap that your prospects would want but no one else is properly offering it, use it your USP. Your unique selling point will help you make an independent name and attract a big portion of the competitors’ customers. Whether you’re an electrician or a dentist, think what you can offer that will give you an edge. This isn’t something you can find on the internet. It requires your skills, knowledge, research, and brainstorming.
Research Target Area
You can’t cover the entire world with your business. You will have to define a perimeter where you will operate. For example, how many miles of the radius will you cover around your office? That radius is your target area where you will offer your service. If you are offering your services online, then consider designing an audience persona to limit your audience. It is crucial to study your target so would know what you are going against.
You wouldn’t want to start a business where there is already too much competition. Likewise, an area where people can’t afford or don’t need your services shouldn’t be your target area. It would be like selling heaters in a hot city in summer. No one needs it, and no one will buy it.
Learn All Legal Requirements
Law is there to ensure our safety and rights. There is a proper legal process every product or service provider has to follow. This is to make sure you are eligible for offering that service. For example, the government can’t just allow anyone to offer dental service. You will need to have a degree and get a license before you start a clinic of your own.
You might also have to register your business before its inauguration. You should also consider the scenarios where your license might be cancelled and what you should do about it. These are the things you have to plan ahead of time or they can drag all your efforts, time, and investment down. If you plan to run your business in California, you will need services of a California Licensing Defense to deal with such situations. It is suggested to contact a lawyer to get detailed and correct legal requirements.
Calculate the Investment
It’s only a dream until you make a plan. After you have a plan in your hand, it becomes a goal. One of the most important things in initial planning is an investment. Be practical about the resources and investment you will need to start your business. The investment can significantly increase or decrease depending on the scale of your startup. If you want to make it in fierce competition, you might need to start with a powerful team and backup.
On the other hand, you can minimize the investment if you count yourself as an employee and handle as many things as you can. Your investment should count the cost of office, tools, labor, and marketing. It is your job to ensure you don’t overlook an expense. It is only after proper calculation that you can arrange for the investment.
Set SMART Goals
Many people have unrealistic expectations from their startup. It’s the worst lie you can tell yourself, which will also demotivate you in the future. A new businessman will have to face many failures before he can attain what people call success. They think about giving up on many points. If they aren’t motivated enough, they do give up. That’s why you must know what you are getting yourself into. Don’t think that you will become a boss on the first day of your business and the cash will start flowing in.
You have to set goals and milestones for yourself and then do your best to achieve them even if you have to burn the midnight oil. These goals have to SMART: specific, measurable, attainable, realistic, and timely. If you set a goal that was impossible or too big, it won’t help you work hard. It will have a contrasting impact leaving you disappointed in yourself.
Create a Financial Plan
A financial plan helps you divide and allocate your resources in the right places. Make a list of all the expenses you will need to make. For example, the duties, investment, and return from each employee you hire. This financial plan should also be considered when planning the required investment. You shouldn’t be too cheap nor too open-handed when allocating resources. If you can take out time to do something yourself, you don’t need to spend money on it. However, you must also not put too many responsibilities on yourself that will distract you from your main duties. You should have funds to finance your business for at least six months even if you don’t get any business.
Start Small
Though sometimes it’s necessary to start as big as possible due to the market, your preference should be to start small. You can survive longer when you don’t have a big setup to support. A service provider can also work alone without any office and assistant. If it’s feasible for you, it should be your first priority. You can increase your team as your business grows. You might be thinking about becoming a boss as soon as you can which is not the right motive for a businessman. Be prepared to become a sweeper of your office if need be. You can hire a janitor when your business is in a stable position.
Draft Services and Rates
Are there types of services you offer or that your customers will need? Research, brainstorm, and make a list of all the services you will offer. At this point, you will also have to decide the charges for your service. It is recommended to offer lower prices than your competitors at the beginning. That said, cheap rates can also give out the wrong expression of your business to your prospects. You should know the purchasing power and mentality of your target audience when deciding rates for your services.
Print Business Cards and Flier
It becomes a business when people learn about it. If they don’t know your company exists, how will they ask for your services? They won’t ask you; you will have to reach and tell them about your company and great service. The best and most common practice to do that is by distributing business cards and fliers. Many people store business cards of all service providers to contact at the time of need. Make sure your cards are attractive and leave a good impression of your business.
Develop a Website
People look for solutions to all their problems on the internet. You should make sure that they find you when they do so. For that, you will need a website and social media pages of your business. Moreover, acquire digital marketing services to spread brand awareness and reach out to your target audience.
I'm Harry Wilson, a senior digital marketing consultant at Globex Outreach. Writing is my part-time hobby because I get to share my experience with the world. Professionally, I help map out a flawless digital marketing plan for the clients at my firm.